Feb 7 (Reuters) - Euro zone government bond yields rose

after U.S. unemployment data supported expectations that the

Federal Reserve would postpone interest rate cuts until at least

June.

U.S. job growth slowed more than expected in January, likely

restrained by wildfires in California and cold weather across

much of the country, but the unemployment rate was at 4.0%.

Germany's 10-year bond yield, the benchmark for

the euro zone bloc, was up one basis point (bp) to 2.38%. It was

down one bp before data. It hit 2.345% on Wednesday, its lowest

level since January 2.

German two-year yields, more sensitive to

European Central Bank rate expectations, rose 2 bps to 2.07%.

Money markets priced in a European Central Bank deposit

facility rate at 1.91% in December from

1.9% before the U.S. data.

Traders of short-term interest-rate futures continue to bet

the Fed will next cut its policy rate in June, and that a second

rate cut by the end of 2025 is likely.

The euro area neutral level for the deposit rate, which

neither stimulates nor restricts growth, is now seen between

1.75% and 2.25%, the ECB said earlier in the session.

The ECB should stand ready to ease borrowing costs to a

level lower than neutral to boost growth, ECB policymakers Olli

Rehn and Mario Centeno said recently.